My first T3, I need understand the number

I attached my T3. there are so many boxes. How can I know these number is correct? Is that possible to do the calculation basing on these numbers to get $461.90
T5 is always very easy to verify if the number is correct or not.

I dont bother recalculating the values in my T3s... last year, I had at least 2 dozens of them
however, be sure to insert every value in your tax software.
also value in case 42 will change your ACB so you need to adjust your ACB because of that
finally, for every fund I own in my unreg account, I will check every year if there was any reinvested cap gain distribution emitted (does change your ACB but does not appear on any slip).

alexcalvado wrote: ↑
I dont bother recalculating the values in my T3s... last year, I had at least 2 dozens of them
however, be sure to insert every value in your tax software.
also value in case 42 will change your ACB so you need to adjust your ACB because of that
finally, for every fund I own in my unreg account, I will check every year if there was any reinvested cap gain distribution emitted (does change your ACB but does not appear on any slip).

And yes, as @alexcalvado said - you can just feed the numbers into software, but for box 42 you'll need to subtract it from your ACB which will affect your capital gain/loss when you sell some XGRO. ACB is your responsibility to track (brokers may not know, e.g. if you also hold same stock at a different broker). Brokers supply T5008 which may help but not obligated to represent the true ACB.

And yes, as @alexcalvado said - you can just feed the numbers into software, but for box 42 you'll need to subtract it from your ACB which will affect your capital gain/loss when you sell some XGRO. ACB is your responsibility to track (brokers may not know, e.g. if you also hold same stock at a different broker). Brokers supply T5008 which may help but not obligated to represent the true ACB.

I just did some research.
So the number in box 42 is 15.74 (positive). This will decrease my ACB right? It means when I sell XGRO, I have more capital gains (pay more tax)?
Also, I only need do ACB for my regular account. Both RSP and TFSA do NOT need calculate ACB right?

Last edited by mouseswimming on Apr 1st, 2020 9:40 pm, edited 1 time in total.

mouseswimming wrote: ↑
I just did some research.
So the number in box 42 is 15.74 (positive). This will decrease my ACB right? It means when I sell XGRO, I have more capital gains (pay more tax)?
Also, I only need do ACB for my regular account. Both RSP and TFSA do NOT need calculate ACB right?

Yes, you need to subtract Return of Capital (T3 Box 42) from your ACB. This will increase the capital gain (or decrease capital loss) when you sell, which may increase your taxes (and I only said "may" because some taxpayers income is low enough that they don't pay taxes).

You only need to track ACB in non-registered accounts. Registered accounts like TFSA, RRSP, RRIF etc. are not subject to capital gains tax so it is not necessary to keep track of ACB.

Deepwater wrote: ↑
Yes, you need to subtract Return of Capital (T3 Box 42) from your ACB. This will increase the capital gain (or decrease capital loss) when you sell, which may increase your taxes (and I only said "may" because some taxpayers income is low enough that they don't pay taxes).

You only need to track ACB in non-registered accounts. Registered accounts like TFSA, RRSP, RRIF etc. are not subject to capital gains tax so it is not necessary to keep track of ACB.